15.26 -0.05 (-0.33%)
After hours: 7:59PM EST
|Bid||15.26 x 4000|
|Ask||15.30 x 800|
|Day's Range||15.01 - 15.52|
|52 Week Range||4.82 - 18.36|
|Beta (3Y Monthly)||1.09|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 3, 2020 - Feb 7, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||17.86|
Snap's third-quarter earnings report showed the company has 210 million global daily active users and Spiegel said there is "a lot of headroom" to expand. Despite a smaller total headcount, Snapchat reaches more 13- to 34-year-old users compared to Facebook, Inc. (NASDAQ: FB). This achievement gives Snap's management the confidence it has a path to continue growing worldwide.
Twitter (TWTR) announces global ban on promotion of political content and ads from political figures like candidates, political parties and government officials.
Shares of Snap , parent company of Snapchat, were rising Monday afternoon after Snap founder and CEO Evan Spiegel said his company fact-checks political advertisements. The stock was up 3.37% to 14.40 a share. "We subject all advertising on our platform to review, including political advertising," Spiegel told CNBC.
Snap (NYSE:SNAP) announced third-quarter results Oct. 22 that were reasonably strong. In the three weeks since, though, SNAP stock has mostly tread water.Source: Christopher Penler / Shutterstock.com If not for Spectacles 3, Snapchat stock would be sitting pretty. Let me explain.Snapchat's Spectacles 3 augmented reality glasses went on sale on Nov. 12 at $380 a pop. When they did, even tech-friendly sites such as Techcrunch questioned the sanity of such a purchase.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Spectacles 3 are too expensive to be a toy, but don't excel at being much more," Techcrunch's Josh Constine wrote. "Videography influencers might enjoy having a pair in their tool bag, but it's hard to imagine anyone not sharing content professionally paying for the gadget."Even CEO Evan Spiegel doesn't foresee augmented reality glasses being adopted en masse by consumers for at least a decade. * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside So, why bother? Why not just keep perfecting prototypes that remain under lock and key until that day arrives?Six letters that spell V-A-N-I-T-Y.In August, I addressed the subject of Spectacles 3. "Until it's generating positive free cash flow, investors ought to be suspicious of vanity projects such as this one. They're a waste of time, resources and focus," I wrote. "While I still believe Snap stock could still hit $20 in 2019, the company's insistence on maintaining the Spectacles business portends a potential correction in 2020."As I reminded readers, Spectacles 3 is a project for a company of Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) size and profitability. It can afford to blow a few hundred million on something like a pair of AR glasses. Snap, most definitely, cannot. Setting the Table for 2020There's no question a 163% return year to date through Nov. 14 is an excellent showing. As I write this, the SNAP stock price is within $2.50 of its March 2017 IPO pricing. In July, it actually pushed through its $17 IPO price, only to lose most of its momentum come the fall.With just six weeks left on the calendar for 2019, I doubt it can rally to $20, something I pondered earlier in the year, suggesting it was "one of the more intriguing low-priced bets available in today's market."In early October, I discussed some of the reasons that Morgan Stanley analysts liked Snapchat stock. At the time, the average target price amongst analysts covering SNAP stock was $17.62. Five weeks later, the target price has inched up 39 cents to $18.01. More importantly, the number of "buy" ratings has grown to 15 from 12 with no sell recommendations, just one at "underperform" and 23 sitting on the fence with a "hold" rating. One of Morgan Stanley's arguments for SNAP stock is the fact that the bank's analysis has continued to underestimate the job Spiegel and company have done delivering financial and operational discipline, the kind that demonstrates it has a pathway to profitability. That pathway is by continuing to chip away at the number of daily active users (DAUs) it has at the end of each quarter. As Snap said in its Q3 2019 report, the social media platform's DAUs were 210 million at the end of September, seven million higher than in the second quarter, and 24 million higher than in the same quarter a year earlier.That's sequential and year-over-year growth of 3.4% and 12.9%, respectively. Not bad for a company that was on the ropes in 2018. The Bottom Line on SNAP StockFor Snapchat stock to get to $20, in addition to adding DAUs each quarter, it's got to convince more investors that it's stopped the bleeding and turned a corner.While I wouldn't say it's there just yet (it still lost $244.5 million on an adjusted EBITDA basis through the first nine months of the year, a 53% decline) the company has made a lot of progress.In fact, for all the disappointment about revenue guidance for the fourth quarter, it's hard to ignore that Snap could make money in the final quarter of the year.Even though Snap lost momentum in 2018, I sense Evan Spiegel has figured out how to get more out of the business in terms of sales without spending more to get those sales. It's critical it continues on this path if it wants to get to $20. I expect SNAP to head into 2020 with some momentum behind it. I just wish it would get rid of the glasses.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post If Not for Spectacles 3, SNAP Stock Would Be Sitting PrettyÂ appeared first on InvestorPlace.
Third-quarter earnings for Bilibili (NASDAQ:BILI) stock will come out on Monday, Nov. 18, after the market close. The Chinese social media company launched its IPO in the spring of 2018. However, it remains mostly unknown to Americans.Source: rafapress / Shutterstock.com Still, with robust revenue growth and a large user base, Bilibili has become a name that China-focused investors should begin to watch.Consensus profit estimates point to a loss of 14 cents per share for the company's third quarter. This would come in 3 cents per share lower than the same quarter last year when BILI earnings came in at a loss of 11 cents per share.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWall Street also predicts revenues for the quarter of $248.8 million. If this holds, it will represent a 65.2% increase from year-ago levels when the company brought in $150.3 million. What Is Bilibili?However, before commenting on the financial performance, most American investors need an explanation of BILI stock itself. Bilibili is a Chinese social media company that operates as a mix of Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube and Twitter (NYSE:TWTR). Its teen demographic also resembles that of Snap (NYSE:SNAP). Users can upload videos and add subtitles that resemble tweets. * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside The Bilibili site also offers mobile gaming. Hence, one can consider it a direct peer to Zynga (NASDAQ:ZNGA) or Glu Mobile (NASDAQ:GLUU), or, in its home country, Tencent (OTCMKTS:TCEHY). Its first quarter saw the company top 100 million monthly users for the first time.The difficulty investors will have going into earnings is whether to buy beforehand. Honestly, this decision looks like a coin toss.With the company not expected to turn a profit until 2021, investors only have revenues to evaluate the stock. Revenue growth is robust, with the amount of money brought in expected to increase by 51.6% this year and 47.2% in fiscal 2020. Also, its price-to-sales ratio stands at about 6.8. This is well above S&P 500 averages but significantly below other newly minted growth stocks.Looking at the charts, it rose in October before plateauing this month. At a BILI stock price of just over $16 per share, it trades roughly at the halfway point between its 52-week lows and highs. Keep China-Related Factors in MindThat said, investors should keep in mind two China-related factors. As most of you know, it's harder to invest in Chinese companies directly. Consequently, BILI stock is in a Cayman Islands-based holding company representing Bilibili. Hence, the market will discount it somewhat for this reason.The other China factor hinges on the trade war. Granted, BILI stock has no direct relationship to the U.S. Nonetheless, traders have a history of buying and selling other Chinese peers based on the trade war, so these U.S.-China negotiations will likely affect Bilibili stock good or bad.So, when will BILI stock become a buy? Since the decision to buy now looks like a tossup, I would wait until after earnings. However, if the report leads to a significant pullback, I see Bilibili stock as a buy on any dip. Moreover, if it rockets higher and can sustain itself above the $21.50 per share high, it could keep moving higher.Still, with the stock showing few price changes, and the fundamentals not pointing in any direction, BILI stock could go either way at current levels. The Bottom Line on BILI StockInvestors need to put BILI stock on their watch lists. However, with the stock not offering any clear direction, investors should wait until after the report to buy. Wall Street forecasts the company will post higher losses on more revenue growth. Still, longer term, analysts expect that growth to take Bilibili into profitability by 2021.For now, BILI stock posts no short-term signals to either buy or sell. It supports a P/S ratio that seems neither high nor low for a new growth equity. Moreover, it trades in the middle of its yearly range.The earnings report could make it a buy, but investors should wait until after the company's announcement to make a move. I expect BILI stock to become a long-term winner. However, as this is a new equity to most Americans, traders should focus on learning now and buying later.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post With Bilibili Stock Stuck in Neutral, Study Now and Buy Later appeared first on InvestorPlace.
U.S. stocks, by any broad market measure, trade at or near all-time highs. But in many ways, it doesn't necessarily feel like it.Source: Shutterstock To be sure, there are pockets of strength. Semiconductor stocks keep moving higher, and a blowout report from Nvidia (NASDAQ:NVDA) should drive further optimism toward that sector. The world's two most valuable stocks, Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), continue to rally.But this doesn't feel like a market in which rising tides are lifting all of the proverbial boats. Investors clearly are uncomfortable with the valuations assigned growth stocks. 2019's initial public offerings have mostly struggled. Usually, when broad market indices have reached all-time highs, skeptics are calling the gains a bubble, or something close. The trading within the market at the moment makes such an argument difficult to make.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFriday's big stock charts highlight names who have been left out of the recent broad market rally. Two of the stocks are growth plays whose recent trading has been impacted by newly apparent concerns about valuation. Another shows the lack of investor appetite for 'cheap' stocks in sectors with significant external pressure. * 7 Earnings Reports to Watch Next Week All three are the kinds of names that usually run wild when the market has lost discipline. And so, in their own way, these three big stock charts might suggest that U.S. equities actually have more upside ahead. Snap (SNAP)A recurring theme in this space has been the idea that a market at all-time highs no longer seems to ignore valuation. Snap (NYSE:SNAP) is an epitome of that theme, and its chart suggests that investors need to make a decision: * In the context of the broad market, the weakness in SNAP stock over the past two months makes some sense. "Growth at any price" has been replaced by a demand for real, consistent earnings. Whether it's Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT), cannabis stocks, or social media plays, investors are demanding profitability. In that new market, as I wrote this week, SNAP stock suddenly seems out of place. * Technically, there's still a case for more downside in SNAP stock. A clear downtrend has emerged since SNAP stock failed for a second time to break resistance at $18. The 20-day moving average still can act as resistance, and SNAP is hugging the 50-day moving average in a bid to find near-term direction. * And so SNAP seems like a name that could signal broader market moves. SNAP has rallied sharply from December lows, but still remains expensive relative to revenue. A narrowing wedge formation suggests Snap stock will move sharply once it breaks the current range. The question is in which direction it will go. At the moment, the risk seems to the downside -- but if SNAP can bounce back and climb higher, other growth stocks may well follow. Pfizer (PFE)It would seem to follow that if broad market indices are at all-time highs, and growth stocks are struggling, then value plays would be gaining. But as pharmaceutical giant Pfizer (NYSE:PFE) shows, that's not necessarily the case. Even among so-called cheap stocks, the sector matters, and that might be not good news looking at the second of our big stock charts: * PFE stock seemed set to break out after third-quarter results on Oct. 29. A cheap valuation and raised full-year guidance briefly led the stock higher. But a quick sell-off suggests there simply aren't enough buyers out there to drive near-term strength. * The pullback in PFE stock implies that investors need a real catalyst to jump into the pharmaceutical and biotechnology sectors. Bristol-Myers Squibb (NYSE:BMY) has rallied as investors come around to its acquisition of Celgene (NASDAQ:CELG). Quieter names like PFE and Gilead Sciences (NASDAQ:GILD) have struggled to drive consistent gains. * In that context, it's hard to be too optimistic about PFE stock in the near term. The recent pullback has fallen through 20-, 50-, and 200-day moving averages. Support may hold again at $35, but it might take a change in investor sentiment for PFE stock to again rally before Q4 results arrive next year. Splunk (SPLK)If growth stocks do return to favor, Splunk (NASDAQ:SPLK) might be one of the biggest winners. As the last of Friday's big stock charts shows, SPLK has struggled for most of 2019. But there's a case for the weakness to reverse: * At the moment, SPLK stock looks reasonably weak from a trading standpoint. A downgrade to a "Neutral" rating from little-known Cleveland Research helped send shares down 6.2% on Thursday. That's not the kind of response seen from a stock backed by confident investors. * Of course, that trading on Thursday highlights the potential opportunity here. SPLK stock trades at about nine times revenue and 50x next year's consensus earnings per share estimate. Those aren't multiples that suggest that the stock is cheap. But they are more than reasonable in the context of growth stock valuations at the moment. And with earnings on tap next week, those multiples suggest that SPLK stock can rally off a big report. * That context makes Splunk earnings next week important to the market as a whole. Gains in SPLK stock after earnings might suggest that investors still are willing to pay up for growth. But anything less, and SPLK stock has the potential to plunge through support at $110. In that scenario, SPLK can keep falling -- and other growth stocks might well do the same.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post 3 Big Stock Charts for Friday: Snap, Pfizer and Splunk appeared first on InvestorPlace.
By most measures, Zynga (NASDAQ:ZNGA) has an exciting growth narrative. For one thing, Zynga stock is up more than 60% year-to-date, easily outpacing the broader markets. More importantly, shares represent a sharp contrast to rival Glu Mobile (NASDAQ:GLUU), which is down nearly 30% YTD.Source: 360b / Shutterstock.com Not only that, Zynga has the fundamental goods to back up Wall Street's enthusiasm. A few weeks ago, the mobile gaming specialist released its results for the third quarter. Against a consensus target for earnings per share of 5 cents, the company produced an EPS of 24 cents. Not surprisingly, ZNGA stock enjoyed outsized gains following the disclosure.Drilling into the details, one of the most impressive components was the growth picture. ZNGA rang up $345 million, representing a 48% lift from the year-ago quarter's haul of $233.2 million. Although analysts were expecting $386 million, the actual tally beat out the $325 million management had previously forecasted.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd just as critical for the future prospects of Zynga stock were bookings of $395 million. According to Zynga CEO Frank Gibeau, this sets up a very positive demand picture for the coming new year. Moreover, both the quarterly bookings and the revenue haul were company records.Put another way, betting against ZNGA stock appears like a foolish way to lose money. * 10 Cheap Stocks to Buy Under $10 Furthermore, the broader gaming industry is shifting positively for Zynga stock. Smartphone-based games have increased their market share at the expense of traditional gaming platforms. Of course, as digitalization proliferates globally, we can expect mobile games to continue dominating.That said, ZNGA stock has had trouble moving decisively past its highs of earlier this summer. Is this just a blip or a sign to get out? Not All Is Well With Zynga StockWith so many positive factors bolstering ZNGA stock, it's hard to imagine any negatives surrounding the underlying company. And as I mentioned earlier, the gaming industry favors the mobile platform.For instance, when I do some gaming, I prefer consoles, such as Sony's (NYSE:SNE) PlayStation. But no matter how you break it down, a console isn't cheap. Add in the latest games and you're racking up a pretty penny. However, if you have a smartphone, you already have the "console." Thanks to Zynga's easily accessible app platform, you can get up and running in no time.Thus, given that Zynga stock is basically Facebook (NASDAQ:FB) with video games, one should expect continued user growth. However, the latest third-quarter report revealed that is not what's happening. Daily active users measured 20 million, flat against Q3 2018 results. Additionally, monthly active users tallied 67 million, down 14% from the year-ago quarter.To be fair, bookings per DAU increased noticeably to 20 cents from 12 cents. However, ZNGA bases its business model on connecting people globally through video games. Thus, you can't just use bookings per DAU as a detraction against nominally flat DAUs and sinking MAUs.Interestingly, Zynga's partnership with Snap (NYSE:SNAP) may offer some clues. As you know, Snap caters to a younger audience. And video games likewise appeal more toward younger people.According to a Pew Research Center study, 60% of Americans aged 18-29 play video games at least some of the time. Among those aged 30-49, the metric drops to 53%. And once you reach 50 years or above, video-game playing falls off a cliff.In other words, Zynga stock may be at risk of aging out like its partner-in-crime Snap. Go Tactical With ZNGA StockAlso, to be fair, the mobile game industry challenges that I mentioned are not limited to ZNGA. Case in point is Glu Mobile, where its DAUs have declined almost 3% between Q3 2018 and Q3 2019.But the difference is that the markets have already penalized GLUU stock. Therefore, the upside ceiling for GLUU is likely technically higher than it is for ZNGA stock.On the flip side, as a Zynga stakeholder, you're more worried about holding the bag. That concern is especially valid considering that the equity has seemingly encountered tough resistance at around the $6.40 level.In conclusion, I think it's wise to trim some profits off of Zynga stock. Although the company's Q3 results were impressive, the declines in user base is off-putting. Furthermore, it's interesting that despite such great results on paper, ZNGA remains below a clearly defined ceiling.As of this writing, Josh Enomoto is long SNE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks to Buy for the Rest of 2019 * 7 Biotech Stocks to Buy With Plenty of Power in the Pipeline * 5 Stocks to Buy That Are Set for Monster Growth in 2020 The post Download Some Profits From Zynga Stock appeared first on InvestorPlace.
(Bloomberg) -- Caroline Spiegel isn’t afraid to talk about sex.The 22 year-old entrepreneur and younger sister of Snap Inc. founder Evan Spiegel, has founded a startup called Quinn, a website for audio erotica.Spiegel hopes Quinn, which is launching officially on Thursday, will become the go-to place for what she calls “the internet’s best-kept secret.” Quinn packages erotic stories and “guided masturbations” behind an interface as polished and minimalistic as any other startup geared toward Millennials, a stark difference from the pop-ups and animated ads often associated with sites like PornHub. In fact, there are no pictures or videos at all.“Audio porn really gets at the sort of non-obvious intangible parts of sex that visual porn just doesn’t get at it in the same way,” Spiegel said.Quinn is the latest addition to a growing adult podcast market. In the last five years, venture capital funds have plowed $1.6 billion into audio-tech companies, according to PitchBook, a category that includes hardware and software for the music and podcast industry. According to PricewaterhouseCoopers and the Interactive Advertising Bureau, the podcasting industry is expected to generate $679 million in revenue this year.And while the numbers don’t break out adult content from general podcasts, it’s clear that the money-generating power and timeless popularity of romance novels has combined with the success of audio startups like Gimlet Media and Anchor to help spur interest in audio erotica.One of the early leaders is Dipsea, an app-based platform for short-form erotic audio stories that has raised $5.5 million from Bedrock and Thrive Capital. A subscription service, Dipsea costs $5.99 a month and now ranks in the top 100 grossing entertainment apps, according to researcher App Annie. Other competitors include Bawdy Storytelling, a podcast featuring long form stories and Literotica, a site mostly known for its written stories, but which also hosts audio content.During her junior year at Stanford University, Spiegel took time off to deal with an eating disorder. As she recovered and rediscovered her sexuality, she said she had a realization that fantasy and arousal “is easier for some people,” men specifically. So she set out to create a product for women and after doing some research settled on audio erotica.The genre isn’t necessarily new. But while there is clearly demand, it has struggled to find the right distribution method. Free audio erotica of varying quality is available on Reddit, and Tumblr once had a robust library before the social media site banned pornographic content late last year.Spiegel saw an opening. Quinn aims to host content, written and uploaded by voice-actors or writers, on a curated, social media-style platform. The site offers users three ways of participating: telling their stories, listening to others’ stories or reading erotic tales. Spiegel said she wants Quinn to not be too tightly curated or have “one voice,” so that everyone can find content that appeals to them. “We want to be a bazillion voices.”To moderate the submissions, Quinn will have “really accurate tagging” so that listeners know what to expect from a story. The site does have a few strict rules, including that stories don’t involve minors or non-consensual acts, and it removes posts that don’t comply. The startup is still considering how it will make money, “because people are not prepared to pay for porn,” Spiegel said. Creators that post content to Quinn can make money by receiving tips from users.In designing the site, Spiegel was conscious of how women are marketed to. “I feel like I'm always kind of being yelled at by products to Be Better! Prettier! Skinnier! More Athletic!” she said. One of the first tenets of marketing is to make a product aspirational, Spiegel said. “But Quinn is kind of like, no thanks to that,” she said. “We’re just trying to make you feel better about who you are already.”Comedian and Quinn-user Remy Kassimir says video porn never appealed to her, since instead of erotic emotions, she’d feel a “nervous overdrive,” comparing herself to the cookie-cutter body types of many women in the videos. Audio erotica presents an alternative for people, especially women, to more comfortably explore their sexuality, she said.Spiegel and her team also discovered, as the site went through beta testing, that almost half of the users were men. This surprise was counter to their initial theory that women were more drawn to audio erotica and men were more visual.On a Monday morning a few weeks before Quinn’s official launch, Spiegel gathered the five-member team for a meeting at the company’s Brooklyn, New York, office. They congregated with laptops around a large wooden dining room table, with a bowl of Quinn-branded condoms as a centerpiece. The sunny loft space, with an industrial style kitchen and open floor plan, looks like any other startup office. But details, like a neon sign reading “XXX DVD Video” hanging on the exposed brick wall, and a faded Playboy from 1972 on the counter, wink at Quinn’s mission.Spiegel declined to name investors in Quinn or say how much the startup has raised though she told Tech Crunch earlier this year that the site had brought in less than $1 million in outside capital.Pitching a sex-tech product presents unique challenges, especially for female founders. “Obviously men are uncomfortable” during a graphic pitch with precise language, Spiegel said. “But they do take my meetings.”Spiegel said audio erotica is popular because it evokes a sense of mystery and sensuality that video doesn’t.“Everyone’s like, ‘Oh VR porn is the future and the more graphic, the more in-your-face kind of porn the better,’” Spiegel said. “Quinn is kind of a contrarian take. Human desire is more complicated and people want content they can really relate to, truly connect with.”To contact the author of this story: Kiley Roache in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Molly Schuetz at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
One share, one vote has long been a pillar of corporate governance in the UK. A big part of London’s appeal has been in offering a “gold standard” when it comes to listings. about relaxing its position on the use of dual-class share structures will not go down well in governance circles.
For those who want to gamble on social media firm Snap (NYSE:SNAP), I can appreciate where they're coming from. Since the start of January, the SNAP stock price has jumped nearly 162%. That easily trumps the year-to-date performances of rivals Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR). Still, I'd consider pocketing some profits if you're in the black.Source: bangoland / Shutterstock.com As impressive as the lift in Snapchat stock is, the bullish case is clearly delineated as a first-half, second-half story. Essentially, shares are almost dead-even since the beginning of July. Thus, all of the positives up to this point are sitting in the rear-view mirror.Further, the stock price has been unable to break out of a defined bearish trend channel that started in late July. And since the beginning of August, shares are down double digits.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, technical sentiment can shift on a dime. That was the case earlier this year when it appeared that Snapchat stock was headed toward a permanent exit. Still, that volatility cuts both ways. Additionally, SNAP has failed to demonstrate longer-term credibility. * 7 Stocks to Sell Before They Roll Over I'm skeptical that it can. A major attraction point for Snapchat stock is that the underlying company resonates strongly with youth. However, as our own Chris Markoch pointed out, Snapchat's user base is starting to skew older. Markoch then asks:Will they stop using the platform? If they continue to use the platform, how will the platform have to evolve to capture disposable dollars in a similar way that filters do today?And even if these users stop using the platform, when it comes to technology the question is always, what's next?I'll answer the last question from an investment standpoint: likely a selloff. Cruel Environment Impacting the SNAP Stock PriceI don't golf, but my friends who do always tell me that the sport is the cruelest. At one moment, you can be on top of the world. In the next, you're shanking your shots.In some ways, social media is the internet's equivalent of golf. On paper, Snapchat stock has the right stuff. They captured youth engagement, which is the most ideal demographic. Although young people are fickle, they're the most culturally relevant. Plus, they grow up to be self-sustaining consumers.Armed with such assets, you'd expect SNAP stock to move consistently higher. But one of the reasons why shares are so volatile is that user gains in social media are difficult, if not impossible to come by after passing a certain threshold.According to the Pew Research Center, social media use among adults started to peak in the middle of this decade. Specifically, very few platforms have demonstrated gains in adult usage. Instagram is a rare exception, although it too has seen a waning growth rate.Usage-wise, the king of all social media, Facebook, has been flat since 2016. If headwinds are stymieing the biggest players, confidence can't be too high for SNAP stock.Another cruel factor working against Snapchat stock is daily usage stats. At first glance, mentioning this point is confusing: among SNAP's user base, 61% work the platform daily. That's a high figure, which indicates that young Americans love Snapchat.But to Markoch's inquiry, what happens when they grow older? Because the one thing that young people have a lot of is personal time. However, when they enter the real world - career, buying a home, starting a family - that free time evaporates quickly.Thus, SNAP's daily usage is a deceptively bearish indicator. Narrow Focus Hurts Snapchat StockFinally, one of the biggest pressure points for the SNAP stock price is the social media firm's narrow focus. Outside of goofing off with friends and acquaintances, there's not much going on for Snapchat.The most vital component of Facebook is its scalable relevance. At each stage in life, Facebook offers something of value. For instance, college graduates can use Facebook to network with others at a time when their own professional credentials are limited.On the other hand, people in the mid-career demographic could use the platform to advertise a new business venture. Or, the politically motivated could get on FB to spark a meaningful grassroots campaign. And of course, older folks can use Facebook to find long-lost friends.Snapchat? I guess you can use it to send rainbow puke filters to your buddies. The thing is, almost everyone grows out of their juvenile phase. That Snapchat doesn't offer utility beyond anyone older than a teenager is perhaps the biggest risk to SNAP stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Sell Before They Roll Over * 5 Beaten-Up Stocks to Buy That Could Be Saved By An Acquisition * 4 Startup Stocks Getting Smashed The post As the Snapchat User Base Ages, Irrelevancy Will Hound SNAP Stock appeared first on InvestorPlace.
Wedgewood Partners, a St. Louis, Missouri-based investment firm, released its 2019 Q3 investor letter – you can download a copy here. Wedgewood Partners managed a 0.39% return for the quarter. Meanwhile, the benchmark Russell 1000 Growth Index and the S&P 500 Index gained 1.49% and 1.87%, respectively. Wedgewood offered a bearish take on social media giant, Facebook Inc (NASDAQ:FB), in its latest letter to investors: "Facebook […]
The 1bn 16-24 year olds currently filtering out into the adult world have grown up during a period of immense cultural, demographic, political and technological change. In the US, the NextGen — those aged under 25 — is the most diverse generation ever. Almost half of the NextGen in the US are non-white, up from 39 per cent of millennials, 30 per cent of Gen X and 18 per cent of baby boomers.
Today we highlighted 4 'cheap' stocks that are currently trading for under $10 per share that also sport a Zacks Rank 2 (Buy) or better that investors might want to consider buying right now...
Most investors have to wait until the end of a quarter to get feedback on how a company performed during the quarter. However, internet stock investors can get some helpful hints about usage and download ...
Current ratio is a popular way for investors to assess the health of a stock’s balance sheet. Current ratio is a measure of a company’s ability to pay its current liabilities and obligations due within ...
Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains breaks down what's next for Facebook and Apple stock...
A new study out from Morning Consult has found that nearly three quarters of Gen Z and Millennials follow influencers on social media — with a whopping 88% claiming they learn about new products via social media. Morning Consult Vice President of Content Jeff Cartwright joins Yahoo Finance's Zack Guzman and Emily McCormick, along with Strictly Cookies CFO Courtney Comstock, to discuss 'The Influencer Report.'
Snap is mixing optical fashion with 3D and augmented reality with the release of their new Spectacles 3 glasses. Yahoo Finance's Dan Howley give his opinion as to whether or not the glasses are worth the price on "The Final Round."